Key Features

Investment Protection

Overview: Investment protection is a cornerstone of the 8lends platform, designed to safeguard investors' capital and ensure their confidence in participating in crowdlending activities. The platform employs several mechanisms to protect investments, including the use of real-world collateral, a comprehensive insurance protocol, and rigorous borrower verification processes.

Mechanisms:

  1. Real-World Collateral:

  • Loans on 8lends are secured with tangible assets such as inventory, stock commodities, and invoices. This collateral provides a stable foundation for loans and minimizes the risk of total loss in case of borrower default.

  • Example: A logistics company seeking a $100,000 loan offers its fleet of trucks as collateral. If the company defaults, the trucks can be sold to recoup the investment.

  1. Rigorous Borrower Verification:

  • Borrowers undergo a thorough verification process to assess their financial health and credibility. This process includes evaluating financial statements, credit history, operational viability, and collateral value.

  • Example: A retail company is thoroughly vetted before being approved to list its project, ensuring it meets the platform's standards for financial stability.

Liquidity Management

Overview: Liquidity management ensures that the 8lends platform maintains sufficient liquidity to support transactions, provide loans, and enable smooth operation of the ecosystem. The Treasury plays a central role in managing liquidity through controlled token issuance and maintaining adequate reserves.

Mechanisms:

  1. Token Issuance:

  • The Treasury manages the controlled issuance of 8LENDS through Basic, Smart, and Demand Issue mechanisms. Tokens are issued based on actual demand to ensure a balanced supply.

  • Example: For a new project requiring $500,000, the Treasury issues and locks 575,000 8LENDS in the Lending Pool.

  1. Liquidity Pools:

  • Special liquidity protocols (SC Sale) are used to ensure tokens are available for purchase, meeting market demand and maintaining price stability.

  • Example: During high demand, additional tokens are made available through SC Sale to prevent price spikes and ensure investors can easily purchase tokens.

Checking Borrowers for Creditworthiness

Overview: 8lends employs a rigorous borrower verification process to ensure that only financially stable and credible businesses are allowed to list projects on the platform. This process reduces the risk of defaults and enhances investor confidence.

Mechanisms:

1. Verification Process:

  • Borrowers are assessed based on a comprehensive set of criteria, including financial health, credit history, operational viability, and market position.

  • Example: A manufacturing company seeking a loan undergoes a thorough evaluation of its financial statements, credit score, market presence, and collateral value.

2. Due Diligence:

  • The platform conducts extensive due diligence to verify the accuracy of the information provided by borrowers and to assess their ability to repay loans.

  • Example: Detailed checks on a company's sales records, existing debts, and market trends ensure the borrower is capable of meeting repayment obligations.

3. Collateral Assessment:

  • The value and legitimacy of the proposed collateral are thoroughly assessed to ensure it provides sufficient security for the loan.

  • Example: A company offering its inventory as collateral must provide documentation and third-party valuations to verify its worth.

4. Financial Analysis:

  • Detailed analysis of the borrower’s financial statements, including balance sheets, income statements, and cash flow statements, to evaluate financial stability.

  • Example: A logistics company’s financial records are scrutinized to assess profitability, liquidity, and debt levels.

5. Operational Review:

  • Assessment of the borrower’s operational capabilities, market position, and business model to ensure long-term viability.

  • Example: A retail company’s business operations, supply chain management, and market competitiveness are evaluated.

6. Market and Industry Analysis:

  • Examination of market conditions and industry trends to understand the external factors affecting the borrower’s business.

  • Example: An agricultural company’s exposure to market volatility and climatic conditions is analyzed to gauge risk.

Collateralization

Overview: Collateralization is a fundamental feature of the 8lends platform, ensuring that loans are backed by real-world assets. This reduces the risk for investors and enhances the security of their investments.

Mechanisms:

  1. Tangible Assets:

  • Loans are secured with physical assets such as inventory, equipment, real estate, and receivables, providing a stable collateral base.

  • Example: A manufacturing company offers its machinery as collateral for a loan. The value of the machinery is assessed and verified.

  1. Collateral Valuation:

  • Maclear conducts to determine the accurate market value of the collateral.

  • Example: A logistics company’s fleet is appraised by an external valuation firm to ensure it meets the loan amount requirements.

  1. Collateral Management:

  • The platform manages and monitors the collateral throughout the loan term to ensure it remains sufficient and unencumbered.

  • Example: Periodic checks on the inventory offered as collateral by a retail company to ensure it maintains its value and is not sold off.

High Yield

Overview: Higher returns for investors due to lower commission fees and optimized operations using blockchain tech and smart contracts.

Mechanisms:

  1. Reduced Transaction Costs:

  • By using smart contracts and blockchain technology, 8lends minimizes intermediary fees and operational costs, directly benefiting investors with higher returns.

  • Example: The absence of banking fees and minimal platform charges increase the net return for investors.

  1. Competitive Interest Rates:

  • Borrowers are offered competitive interest rates, ensuring that investors receive attractive returns on their investments.

  • Example: A logistics company offers a 15% annual interest rate on a loan, providing investors with significant returns compared to traditional savings accounts.

Collective Investments

Overview: Collective investments allow multiple investors to pool their resources to fund larger projects, diversifying risk and enabling participation in high-value opportunities that might be otherwise inaccessible to individual investors.

Mechanisms:

  1. Pooled Investment Funds:

  • Investors can contribute to a collective pool that funds various projects, spreading risk across multiple investments.

  • Example: A group of investors pools $1,000 each to collectively fund a $100,000 project, reducing individual exposure to risk.

  1. Shared Returns:

  • Returns from collective investments are distributed proportionally to each investor based on their contribution.

  • Example: The logistics company funded by a collective pool repays the loan with interest, and each investor receives a share of the returns proportional to their initial investment.

  1. Diversification:

  • Collective investments enable diversification across different projects and sectors, reducing the impact of any single investment’s performance on the overall portfolio.

  • Example: Investors participating in multiple pooled funds spread their risk across logistics, agriculture, and retail projects, balancing potential returns.

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